Star Health Shares Price 6% Below To IPO Issue Price; Makes Weak Debut At Stock Market

 Star Health Shares Price 6% Below To IPO Issue Price; Makes Weak Debut At Stock Market

Star Health Share Price makes a weak debut in the market, Star Health and Allied Insurance Company shares were listed at Rs 845 on the National Stock Exchange with a discount of 6% to its issue price of Rs 900. Along with that, the shares opened at Rs 848.80 at the Bombay Stock Exchange followed by a discount of 5.69%. 

Earlier on Thursday, a day before its listing, the shares were trading at a discount of Rs 70-75 per share in the grey market, while the company sold its shares at the price band of rupees Rs 870-900 per share. After receiving a poor performance at the market, the shares of Star Health as of 10.52 AM were trading at Rs 901.15 at the National Stock Exchange and Rs 901.55 at the Bombay Stock Exchange. According to market observers, the response can be a result of its inexpensive valuations and dent in its profitability due to the pandemic followed by a weak listing of Paytm recently. 

Star Health IPO details

Star Health commenced its three-day initial share sale on November 30, Tuesday and later concluded it on December 2, Thursday. The Star Health IPO came at a time when several Indian companies had already floated over by public offers with Nykaa and One97 Communications being the recent ones and now preceded by Star Health. 

As announced by the company, the price band of Star Health IPO was set at Rs 870-900 per share while the initial share sale was expected to fetch Rs 7,249 crore at the upper end of the price band. However, the eighth-largest IPO had managed to make a weakened sail further garnering just 79% subscription. 

About Star Health Insurance

Led by Rakesh Jhunjhunwala, Star Health and Allied Insurance Company is India's first and largest standalone health insurance company which issued its three-day initial public offering (IPO) on November 30. The company is presently standing with a market share of 15.8% in the current fiscal year. Presently Safecrop Investments India LLP has a 47.77% stake in the company, while Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala have a stake of 14.98% and 3.23% respectively. 

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